FLINT, Michigan --Auditors painted another bleak budget picture for City Council, this time drawing a parallel between current budget woes to those of the waning days of the Woodrow Stanley administration.

Auditor Brian Ross on Monday said the city's current financial state is similar to the years immediately prior to the state takeover of the city.

"You can see the trends," Ross said, pointing out that in 2007-08 the city borrowed heavily from the sewer fund, similar to what happened under the Stanley administration. Also, the city's cash-flow position is at its weakest point since 2002-03, Ross said, when the city was mired in a state takeover.

"The loss we incurred this year is very equivalent to the losses incurred in the years prior to the state takeover," he said.

• The city's general fund borrowed $14.6 million from the sewer fund in 2007-08 -- money that must be paid back. The city's general fund last borrowed from the sewer fund in 2004-05, to the tune of $7.2 million.

• The city's pooled-cash account, similar to the city's checkbook, stands at $54 million, its lowest level since the days of the state takeover. The city's pooled-cash account had swelled to $80 million by 2006, records show, reflecting a more healthy city budget. It was whittled down to $52 million in 2003 after years of deficits and when the city was being run by an emergency financial manager.

But budget director Michael Townsend said much has improved with how the city budgets its money as compared to the Stanley administration.

"They didn't know how much money they were spending," Townsend said. "They didn't make the cuts. We're making the cuts."

Townsend said another round of budget cuts likely is on the horizon, with announcements expected in late January or early February. The city trimmed more than 45 police positions last year and made numerous cuts to other departments.

Stanley, now a state representative, was recalled in 2002. Mayor Don Williamson is facing a recall election on Feb. 24.

Ross, of Plante & Moran, has criticized the city for not making enough cuts last year. Townsend said that's easy to say in hindsight, but it's like being a "Monday morning quarterback."

The city's deficit was $8.3 million, which is far less than the $28 million in deficits rung up under Stanley. But Ross said other warning signs point to deep weaknesses within the budget.

• The city's troubled general fund borrowed $14.6 million from the sewer fund, money that by state law has to be paid back. The general fund did not borrow any money in 2005-06 or 2006-07, although it did borrow $7.2 million from the sewer fund in 2004-05.

Townsend said he doesn't see that as a big problem. He said the city simply has to match revenue with expenses, and that they are working on it.

• The city's pooled-cash account, which is similar to the city's checkbook, is at its lowest level since 2002-03, when the city was being operated by an emergency financial manager. The city had $54 million in its pooled cash account in 2007-08, down from $80 million in 2005-06. The city's pooled-cash account had dipped to $52 million in 2002-03.

Councilman Kerry Nelson said it's unfair to pin the blame on Williamson and that the budget under Stanley was far worse than it is now.

"This is a political game set up for the recall of Williamson," Nelson said.

But Councilman Scott Kincaid said he predicted in 2007 that the budget problems would become dire, but no one listened.